Revisiting Terrorism Risk

On the sixth anniversary of September 11, we take a look at a timely new Marsh risk survey of Fortune 1000 companies. The survey findings offer us an insight into how board-level executives at these companies view international terrorism attacks among seven other risk scenarios, including natural disasters, rapidly rising oil prices and pandemics. While terrorism ranks second only to natural disasters in terms of the most likely crisis scenario to occur, just 38 percent of Fortune 1000 executives felt that international terrorist attacks were likely to occur in the next eight to 10 years. This compares with 65 percent who felt that natural disasters were the most likely to occur. At the same time, 39 percent said a terrorist attack would have a catastrophic impact on their business. When asked if they had taken steps to prepare, roughly four in 10 (44 percent) of those surveyed said their company has prepared for a terrorist attack, compared to 58 percent for natural disasters. On the flip side, very few executives believe it is likely that a housing market collapse, reduced access to water or a pandemic disease, will occur in the coming decade. Encouragingly, in the event of one or more of the eight crisis situations, 74 percent of those surveyed say their company has prepared a business continuity plan. Check out further I.I.I. terrorism risk information  online.

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